Funding Explained
There are many types of funding out there — not all of them are grants. Below is a quick overview of the most common categories, so you can explore what fits your business best. Each section links to key support schemes or services.
If you’re looking for local opportunities - whether it is grants or other types of support, don’t forget to check your local council website — many run small grants or contracts that aren’t widely advertised. Find your local council here.
From Experience, Not Theory
This isn’t a sales page — it’s here to help you understand the funding landscape and get a clearer sense of what different options involve. Every section is based on our real experience supporting small businesses and highlights what actually matters when exploring different funding routes.
Business Growth Grants
Grants are non-repayable funds provided by government bodies or industry organisations to support specific business activities.
Unlike loans, you don’t pay grants back but you do need to meet the criteria and use the money as intended.
Business growth grants typically help small and medium-sized businesses grow, boost productivity, or adopt new technologies. They may cover capital investments, staff training, or operational upgrades. Schemes are often managed by local growth hubs, regional authorities, or public-private partnerships.
Business growth grants aren’t the same as funding for non-profits, charities or R&D activities. The rules and aims are different.
Explore our Fast Track to Grants Toolpack
Innovation and R&D Grants
Financial support for businesses developing new products, technologies, or services — covering research, testing, and development costs.
This includes grants and competitions from funders like Innovate UK, along with sector-specific schemes backed by government or industry bodies. R&D funding is typically aimed at innovation with clear commercial potential — not just ideas, but solutions that can reach the market. These opportunities are competitive and often require a solid business case, a well-defined technical approach, and a plan for how the innovation will be commercialised or scaled. Most schemes expect applicants to share costs (match funding) and provide detailed project budgets and timelines.
If you want an honest opinion on whether your idea, product, or project fits — contact us. We've assessed dozens of successful (and unsuccessful) R&D applications and will be happy to advise.
Tax Reliefs and Incentives
These are schemes that reduce your company’s tax bill or offer a cash rebate — designed to encourage investment in innovation, assets, or intellectual property.
Businesses investing in R&D or new technologies may be eligible for R&D Tax Credits, Patent Box relief, or Capital Allowances. These incentives can lead to substantial savings, but they require meeting HMRC’s eligibility criteria and maintaining proper documentation.
Most sectors — with very few exceptions — can benefit from R&D tax relief if they’re developing new or improving existing products, processes, or systems. This applies to a wide range of industries, from architecture and engineering to food production and design. If you're investing in innovation or research within your field, it's well worth exploring these incentives.
If you’re unsure what qualifies, or how to apply, feel free to get in touch. We’ve worked with these schemes across sectors and can offer a second opinion before you commit significant time or money
Government Contracts & Procurement
Opportunities for businesses to supply products or services directly to government bodies through competitive tendering and procurement processes.
Many UK businesses can unlock growth opportunities by supplying goods or services directly to public sector bodies. These opportunities are awarded through formal procurement and competitive tendering processes, offering a route to stable and often long-term revenue.
Tenders are published on platforms such as Contracts Finder and Find a Tender, covering sectors from digital services and professional consultancy to infrastructure and construction. Public authorities seek high-quality solutions at competitive value, but the bidding process demands compliance, strategy, and clarity.
If you’re navigating tenders for the first time — or want a clearer view of how procurement works in your sector — we’re happy to share what typically makes a bid competitive, and what pitfalls to avoid — saving you time and making sure you don’t miss the right opportunities.
Business Incubators & Accelerators
Structured programmes providing start-ups and SMEs with mentorship, resources, networking opportunities, and sometimes funding, to help accelerate business growth.
Start-ups and SMEs seeking rapid growth can benefit from structured programmes that offer expert mentorship, funding opportunities, strategic resources, and access to investor and partner networks. These initiatives are designed to sharpen commercial focus, reduce time to market, and build scalable business models.
If you’re considering one of these programmes like Innovate UK Business Connect (formerly Innovate UK EDGE), the Eureka network or or other less-publicised programs we regularly work with — it helps to understand what they’re really looking for and how to position your business to stand out. Some are highly competitive, but the right fit can open doors to funding, support, and valuable connections.
Export Finance & Trade Support
Financial assistance, credit guarantees, and advisory services helping SMEs manage risks and costs associated with international trade and exporting.
UK Export Finance (UKEF) and the Department for Business and Trade offer a range of support for businesses looking to expand internationally.
This includes trade finance, export credit insurance, and grants to support a range of export-related activities — from attending overseas trade shows and exploring new markets, to conducting market research, adapting products for international use, or building export strategies. These schemes are designed to improve cash flow, reduce risk, and lower the cost of entering global markets.
Planning to export or expand abroad? It’s worth understanding which schemes are a realistic match for your business and how to align your plans with what funders want to support. The right preparation can turn early interest into a focused, fundable international growth plan.
Crowd Funding and Alternative Finance
Funding raised directly from individuals or communities through online platforms or non-traditional lenders, bypassing conventional banks or investors.
Alternative finance includes routes like equity or reward-based crowdfunding, peer-to-peer lending, and revenue-based financing. Some of these options involve giving up equity (diluting your ownership), while others are non-dilutive and based on repayment or revenue share. They can offer flexibility and speed, but also require a clear pitch, credible financials, and a solid understanding of investor expectations.
Before you dive in alternative finance routes, it’s important to know which route fits your business model and how to present your case effectively. A well-prepared campaign can make the difference between interest and investment.
Equity Funding
Equity finance involves raising capital by selling shares in your business. It can come from angel investors, venture capital funds, or institutional investors.
This type of funding is often well suited to businesses with strong growth potential, especially those developing innovative products or entering new markets. In addition to capital, it can bring strategic input, networks, and long-term partnership. To attract the right investors, you need a clear business model, a compelling growth plan, and evidence that your team can deliver.
There are many ways to connect with investors — from well-known platforms like Seedrs, Crowdcube, and Angel Investment Network, to more curated routes that aren’t always visible online.
Before engaging with investors, it’s worth understanding what different funders expect, how due diligence works in practice, and how to present a funding case that holds up under scrutiny.